The Bangko Sentral ng Pilipinas (BSP) reported a net income of P45.44 billion in the first six months of 2021, up by 231 percent from same period last year of P13.71 billion, based on BSP’s latest unaudited, preliminary statement of income and expense.
The BSP’s net income expanded mainly due to an increase in revenues of 104.50 percent.
Total revenues as of end-June amounted to P95.93 billion from P46.91 billion while total expenses was up at P50.54 billion or more than 45 percent from P34.63 billion same period in 2020.
The BSP also reported a foreign exchange gain of P51 million, a modest amount compared to P1.58 billion same time last year.
For the second quarter, the BSP had a net income of P20 billion which was lower than P25.41 billion in the first three months due to the “significant increase in interest on National Government (NG) deposits combined with large decline in miscellaneous income.”
Preliminary data as of end-June also showed that BSP’s total assets increased by 22.1 percent year-on-year to P7.68 trillion while its total liabilities rose by 22.8 percent to P7.53 trillion.
BSP’s total assets are comprised of international reserves which increased during the period primarily because of the NG ROP Global and Samurai Bond issuances deposited with the BSP. The BSP’s income from its investments abroad also contributed to the increase in asset size during the period.
The BSP’s liabilities are mostly deposits and currency issues.
BSP Governor Benjamin E. Diokno said the BSP remitted almost P16 billion as dividends to the NG for the funding of its anti-pandemic programs in June and in August.
Diokno said the BSP declared dividends of P15.896 billion for the fiscal year 2020, of which the first P15 billion was remitted last June 28. Another P896 million was deposited to the government treasury last August 18. The BSP reported a net income of P31.71 billion in 2020, lower compared to 2019’s P45.81 billion.
The BSP chief said the dividends represent 50 percent of the total net income of BSP for 2020.
Since the pandemic began, the BSP has remitted P36 billion to NG. It remitted P20 billion in March 2020 from its 2019 net income, and another P15.896 billion last month.
Diokno said the central bank is no longer mandated to remit dividends to the NG after its charter was revised in 2019, but it will continue to remit dividends for as long as the government needs additional funding in this “extraordinary time”.
The revised BSP Charter has authorized the BSP to increase its P50 billion capitalization to P200 billion. It will be funded by its net income since the law does not require the BSP to remit dividends to the NG anymore.
The central bank’s amended law or Republic Act 11211 (“An Act Amending Republic Act No. 7653, Otherwise Known as the ‘New Central Bank Act’, and for Other Purposes”) was approved last February 14, 2019. Section 2 of the amended charter specified that declared dividends will be deposited in a special account in the BSP’s general fund and will be “earmarked for the payment of the BSP’s increase in capitalization (and) such payment will be released and disbursed immediately and will continue until the increase in capitalization has been fully paid.”